One of the many perks of owning a business comes at tax time in the form of deductions. When you own a business, there are many different things you are able to deduct which helps out during a more stressful time.
Here are some of the things you could be eligible to deduct if you run a business.
• Car expenses: if you use a vehicle for your business the cost of operating the vehicle could be a deductible. In deducting costs, you need to keep records of cost (e.g., gas receipts, oil change receipts, keep track of miles/km). This is a list of what can be deducted when it comes to your vehicle.
- Fuel & oil
- Insurance
- Lease payments (if you lease)
- Parking fees
- Repairs & maintenance
- Toll charges
- Vehicle registration fees
• Office/business supplies: If you need supplies to run your business, that is tax-deductible.
• Home office*: If your home is used regularly and exclusively as the principal place of business, a place to meet or deal with clients or customers, or as a separate structure used in the business you can use this as a deductible.
Here are a few other home office-related expenses you can deduct:
- Mortgage interest on your residence
- Property taxes
- Repairs & maintenance
- Home insurance
• Utilities*: Things such as utilities and your phone are deductible items
• Advertising: Depending on the form of advertisement you use it will determine how much is deductible.
• Meals: If you take a client or employees out for a meal, hold onto that receipt, it is a tax deduction.
Tax deductions will help to save you money by reducing your taxable income. Be sure to take total advantage of all the deductible expenses. If you need help figuring out what can be deducted, reach out and we will go through it together.
*Disclaimer: For deductions from your costs within your house, it is based on meeting certain requirements and then if you meet those requirements, you can claim a certain percentage of your bills.
